Nvidia Just Did This for the First Time Ever. And These 8 Words From Jensen Huang Show ...

Nvidia ( NVDA +8.74% ) has delivered incredible earnings growth to investors quarter after quarter since the early days of this artificial intelligence (AI) revolution. The company is the world's leading designer of AI chips, the products that fuel key tasks throughout every stage of AI development and use -- and this has translated into record levels of revenue and profit. The tech giant hasn't stopped at these graphics processing units (GPUs), however, and has expanded into a broad range of products and services to create an AI empire. This means companies can turn to Nvidia for all of their AI needs. In the latest quarter, this formula has once again delivered success, with Nvidia roaring past analysts' estimates and speaking of ongoing high demand. On top of this, the company just did something it's never done before. And eight words from Nvidia chief Jensen Huang show us why it's fantastic news for investors. Let's zoom in for a close look. Image source: Nvidia. Triple-digit growth First, though, we'll start with a quick look at Nvidia's latest earnings figures. The company reported a mind-boggling 106% increase in revenue to more than $96 billion, and this is as earnings per share soared 120% to $2.22. Analysts had projected about $92 billion and $2.10, respectively. Nvidia's earnings soared as major cloud service providers , as well as AI labs, start-ups, and other companies flocked to its AI offerings. Nvidia's strength lies in its full stack, encompassing GPUs, central processing units (CPUs), networking tools, and other products and features. This has made each Nvidia architecture -- from the current Blackwell to the upcoming Vera Rubin -- higher performance than its predecessor. And this focus on innovation, with Nvidia releasing chip updates on an annual basis, has kept Nvidia's growth soaring. With Rubin production shipments underway, investors may expect a new wave of growth ahead. Now, let's consider the recent move that Nvidia made for the first time ever: In the company's fiscal 2027 second-quarter earnings report this week, it offered a forecast for the next full year. Nvidia expects a 70% increase in annual growth. And this is due to supply constraints; customer demand alone actually suggests revenue could double. Why is Nvidia forecasting a year ahead of time when it hasn't done so in the past? The following eight words from Huang offer us a clear answer. "Greater visibility" "We just have a lot greater visibility now," Huang said during the company's earnings call. This is due to a couple of factors. AI is now being regularly used, with large language models requiring massive amounts of compute -- and this results in demand for AI chips and systems. The increasing use of AI should support this high demand moving forward. And, as I mentioned earlier, Nvidia's full stack makes it a natural choice for companies operating in the AI space. All of this makes it easier for Nvidia to look further into the future and predict potential revenue levels. This is fantastic news for investors because it offers us more visibility on what's next in the AI space -- whether you're investing in Nvidia or other AI players. As the AI chip leader and known for its close communication with customers, from companies to countries, Nvidia is well-positioned to offer us this view. Expand NASDAQ : NVDA Nvidia Premium Feature Moneyball Superscore 96 /100 Today's Change ( 8.74 %) $ 18.32 Current Price $ 227.98 Key Data Points Market Cap $5.5T Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $ 220.90 - $ 230.47 52wk Range $ 164.07 - $ 236.54 Volume 2.2M Avg Vol 141.8M Gross Margin 74.67% Dividend Yield 0.12% Though this revenue forecast clearly is great news for Nvidia, you still may be wondering whether the stock is a buy today. After all, it's climbed more than 800% over five years, but with a 12% gain for the year through the Aug. 26 market close, recent performance has been lackluster. I see this pause as a valuable buying opportunity -- even if Nvidia doesn't take off immediately, this market leader is well-positioned to deliver incredible growth over the long term. And its forecast for growth next year, as well as Jensen Huang 's words, offer us reasons to be confident about that.